Finding 958719 (2023-002)

Department of Education 2023-002 Pass through Kentucky Department of Education; COVID-19 Education Stabliziation Fund - Assistance Listing No. 84.425; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliane with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. Cause: Wages paid from the Education Stabilization Fund were paid at rates different than the rates approved for the year Effect: Disbursements could be made using COVID-19 Stabilization Funds that are not in compliance with grant requirements Questioned Costs: No questioned costs were incurred form this finding Context: A sample of 40 payroll checks, from a population of 1,579 payroll checks, was selected for audit procedures. Of the 40 payroll checks tested, we noted one check was paid at a rate different than the rate approved for the year. Recommendation: Controls should be monitored to ensure that payroll is paid at approved rates